Hello BP members,
I found 3 multifamily auction's around my house but i had only one week to bid, so I tried to find out everything possible which lead me to an older action for all three and the starting bid was $1,000,000.
so i set my goal to bid 15,000-18,000 per unit with more than 95% occupation and average rent price of $400, anyhow i didn't made the bid and they didn't sold them yet.
my question is what next can make an offer to the broker?
do i need to wait for the next auction?
thanks in advance
No go directly to the agent and put in an offer.
depends on what kind of auction. if it was auction.com then its a scam because the system creates phantom bids against you.
Thanks for the answer's.
it was online auction for the Benton county court here in AR.
as i said in May they did one auction for all the 3 properties 16+17+84=117 Units.
the first two are multifamily houses and the 84 unit's are one complex with 8 buildings.
this time they separated the auction to 3 , the starting bid for the 16 and 17 was $150000
and the 84 started at $800,000 , anyhow the 17 units complex got $400,000 bid and it says no reserve met, my goal depending on the fact that nobody bid in the last auction was $280,000 each the 16 and 17 units complex and 1,100,000 for the 84 units $1,560,000 and maximum of $1,750,000.
now the 17 units has gone from the listing so i believe they sold at for around $400,000, and i still want to buy the other 100 units, $280,000 for the 16 units and $1,100,000 for the 84 units I want to know if my prices are reasonable?
@Sam Alon We aren't going to be able to tell you if they are reasonable without more #'s on the buildings themselves. Do you have some comp's that you can go off of? Are you sure you have the experience to take this down correctly?
Hey Zach I didn't managed to find comps for apartment in that area, the average price for 2 bedroom houses or town homes is around $85,000.
anyhow i planning to buy and hold and that's what i checked, if my buying price is less then $1,500,000 and 95%+ occupation It means that i can get my money back within 4 yr or less. there's waiting list on almost any complex.
I'm strongly believe that the price of $1,500,000 will make this great investment.
It's reasonable to offer less then $20,000?
I don't have the experience but i think in that price is an easy calculation.
I would love to get suggestions.
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